Amazon.com (NASDAQ:AMZN) Shares Up 2.9% – Should You Buy?

Amazon.com, Inc. (NASDAQ:AMZN)’s share price rose 2.9% during trading on Monday. The company traded as high as $275.34 and last traded at $266.93. 50,510,704 shares were traded during trading, an increase of 8% from the average daily volume of 46,787,617 shares. The stock had previously closed at $259.30.

Amazon.com News Roundup

Here are the key news stories impacting Amazon.com this week:

• Positive Sentiment: JPMorgan added Amazon to its Focus List, citing AWS’s growth prospects. Reports point to AWS growing 39% in the latest quarter, a $578 billion backlog, and potential growth above 40% in 2027 and 2028. Amazon Stocks Rise as JPMorgan Adds It to Focus List on AWS
• Positive Sentiment: Investors may also be encouraged by AWS’s strong operating performance and its position to benefit from AI demand. One report says AWS operating income rose 55% to more than $17 billion as revenue growth reached a nearly five-year high. Amazon Stock Gains as AWS Growth Hits a Five-Year High
• Positive Sentiment: A valuation argument may support the shares: Amazon’s reported price-to-earnings ratio has declined from 34 to 21 over the past year, while analysts cited in the article expect normalized earnings per share to nearly double by 2028. Amazon Is the Cheapest It’s Been in Years
• Neutral Sentiment: Amazon Haul is holding a week-long promotional event amid reported customer growth, which could help attract shoppers ahead of the holidays; the deep discounts may also pressure retail margins. Amazon Haul Launches Pre-Holiday Deals as Users Jump 350%
• Negative Sentiment: Risks include intensifying cloud competition and heavy AI-related capital spending. Amazon also narrowly missed analyst estimates for quarterly EPS and revenue, tempering the otherwise strong AWS results. AWS Revenues Up 39% as Cloud Rivals Gain Pace

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on AMZN. Tigress Financial restated a “buy” rating and issued a $385.00 target price (up from $315.00) on shares of Amazon.com in a report on Tuesday, October 6th. Truist Financial set a $390.00 price target on shares of Amazon.com in a report on Friday, October 30th. Roth Capital reissued a “buy” rating and issued a $325.00 price objective on shares of Amazon.com in a research report on Monday, August 3rd. Weiss Ratings reissued a “buy (b)” rating on shares of Amazon.com in a research note on Friday, October 30th. Finally, Monness Crespi & Hardt raised their target price on shares of Amazon.com from $315.00 to $330.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, fifty-five have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $321.74.

Amazon.com Stock Performance

The stock has a market cap of $2.89 trillion, a PE ratio of 21.58, a P/E/G ratio of 1.97 and a beta of 1.49. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.99 and a quick ratio of 0.82. The stock has a 50-day simple moving average of $253.96 and a 200-day simple moving average of $243.57.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings data on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share for the quarter, missing the consensus estimate of $1.97 by ($0.08). Amazon.com had a net margin of 16.90% and a return on equity of 15.72%. The firm had revenue of $201.94 billion during the quarter, compared to analyst estimates of $202.22 billion. During the same period in the prior year, the firm earned $1.95 earnings per share. The business’s revenue for the quarter was up 12.1% on a year-over-year basis. Equities analysts predict that Amazon.com, Inc. will post 7.80 earnings per share for the current fiscal year.

Insider Transactions at Amazon.com

In other Amazon.com news, CEO Andrew Jassy sold 20,000 shares of Amazon.com stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the transaction, the chief executive officer directly owned 2,235,766 shares of the company’s stock, valued at $579,085,751.66. The trade was a 0.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the sale, the senior vice president owned 41,190 shares of the company’s stock, valued at approximately $10,699,926.30. This represents a 18.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 71,589 shares of company stock valued at $18,545,595 in the last three months. 8.90% of the stock is owned by company insiders.

Institutional Trading of Amazon.com

Several large investors have recently added to or reduced their stakes in the stock. Silvant Capital Management LLC acquired a new position in shares of Amazon.com in the second quarter worth about $60,065,000. Public Employees Retirement System of Ohio acquired a new stake in Amazon.com during the 2nd quarter valued at approximately $909,868,000. Northstar Financial Companies Inc. acquired a new stake in Amazon.com during the 2nd quarter valued at approximately $3,376,000. Gryphon Financial Partners LLC increased its holdings in Amazon.com by 7.5% during the 1st quarter. Gryphon Financial Partners LLC now owns 73,085 shares of the e-commerce giant’s stock worth $15,221,000 after purchasing an additional 5,125 shares during the last quarter. Finally, First Citizens Bank & Trust Co. raised its position in shares of Amazon.com by 1.7% in the 1st quarter. First Citizens Bank & Trust Co. now owns 303,862 shares of the e-commerce giant’s stock valued at $63,285,000 after purchasing an additional 5,104 shares in the last quarter. 72.20% of the stock is currently owned by institutional investors and hedge funds.

About Amazon.com

Amazon.com, Inc is a technology and e-commerce company founded by Jeff Bezos in 1994 as an online bookstore. It has since grown into a global business serving consumers, sellers, developers, enterprises and content creators.

Amazon operates online stores and marketplaces, where it sells products directly and enables third-party sellers to reach customers. Its other businesses include Amazon Web Services, which provides cloud computing and related services; digital advertising; Prime memberships; and entertainment offerings such as streaming video and music.